No linked challenges.
No linked visions.
The efficacy of the Caux Round Table Principles to businesses in Africa
Affirming commitment to corporate social responsibility (CSR) business principles promote positive company image....
Over the years, myriad of businesses in Africa and other parts of the globe have been profit-obsessed rather than being customer and environment oriented. All their interests were on how to increase profits to satisfy shareholders at the detriment of the internal and external stakeholders. In ensuring that the inalienable rights of customers, employees, society and other stakeholders are preserved, many are the business principles that have been propounded by business gurus and international organisations. One of such is the Caux Round Table Principles. It is an international UN- accepted code of good practices proposed by senior industrialists which aims to promote ethical business practice by improving economic and social conditions (Caux Round Table Principles, Moral Capitalism at work, 2010). The underlying seven principles are (see link for more details- http://www.cauxroundtable.org/index.cfm?menuid=8):
Principle 1 - Respect Stakeholders beyond Shareholders
Principle 2 – Contribute to Economic, Social and Environmental Development
Principle 3 – Build Trust, Candour, Truthfulness, and Transparency by going beyond the Letter of the Law
Principle 4 –Respect Rules and Conventions
Principle 5 –Support Responsible Globalisation
Principle 6 – Respect the Environment
Principle 7 – Avoid Illicit Activities like tax evasion, corrupt practices, bribery, money laundering, etc.
Some companies nowadays are running business according to the CAUX Principles but others are still adamant to change. They are adopting fraudulent means to make profits at the expense of customers and the general public at large. A typical example was in China in the year 2009, when two people (Zhang Yujun and Geng Jinping) were executed for endangering public safety through the production and sale toxic milk powder products. With reference to some companies in Africa, the problem of tax evasion through under invoicing and over invoicing is nothing new. It is one peculiar problem militating against the development and progress of many African countries. According to a report by Action Aid titled "Breaking the Curse” published in 2009, the continent loses U.S. $90 Billion to tax evasion by international mining companies (Lumiti C., 2009).
Fusing the Caux Round Table Principles into operational strategies of businesses in the continent will mean that the burden of corruption, tax evasion, environmental pollution, bribery, fraud and other illicit practices known to be a trade mark of scores of African businesses will be vanquished. Notwithstanding the concomitant benefits that come along in adopting an ethical business code of conduct like the Caux Round Table Principles, many are the businesses that are reluctant to embrace such opportunity. The question therefore as a researcher, I would pose is “what is preventing some African businesses from affirming their commitment to certain corporate social responsibility (CSR) business principles?”
http://www.nydailynews.com/news/world/2009/11/24/2009-11 (Toxic milk powder saga in China, retrieved on the 23rd of July, 2010);
http://allafrica.com/stories/200903301470.html(Tax evasion article by Lumiti C., 2009, retrieved on the 21st of July, 2010);
http://www.cauxroundtable.org/index.cfm?menuid=8(Caux Round Table Principles, retrieved on the 23rd of July, 2010)
Research question: what is preventing some African businesses from affirming their commitment to certain corporate social responsibility bu
Can you solve this challenge?
or
Would you like to comment?
Log in or Sign up
Comments